Enabling AI Through Data-Driven Business Models


By Ioana Mazare, Vice President, Enterprise Data Strategy, UPS

The digital landscape is evolving rapidly today, and technological possibilities are becoming limitless. In this environment, a solid organizational foundation is key, and companies now recognize data as a strategic asset that unlocks competitive advantage and innovation. Data is not just supportive but a critical component of modern business models, influencing every aspect of operations—from technology deployment and process optimization to people management. As organizations gear up to integrate Artificial Intelligence (AI) into their ecosystems, the pivotal role of data intensifies. It serves as the critical underpinning for successful transformations, ensuring that businesses are not only prepared to implement AI but are also positioned to lead in the new digital era.

Data and Technology. AI’s promise to transform business is significant, and its potential can be realized through an intentional effort to integrate it with existing technologies. For AI to be effective, data must seamlessly interact with current systems, which often translates into changes to legacy infrastructures. This integration is an opportunity to build scalable and adaptable capabilities, that fit not only current AI technologies, but also evolve with the organization’s needs.

Today’s investments in technology pave the way for digital transformation and advanced analytics. These initiatives depend on sophisticated data architectures designed to manage large volumes of real-time data. To make technology AI-ready, businesses need to upgrade their systems to support advanced data analytics, which are crucial for AI functionality.

Such investments should be the product of careful tool selection, designed for optimal technical debt management, and support well-defined business outcomes.

Transforming a business to be AI-ready requires a fundamental rethinking of how data is integrated across all aspects of the business model.

Data and Processes. Adopting AI requires a fundamental reengineering of business processes centered around data. Traditional workflows must be redesigned to leverage AI’s capabilities, enhancing efficiency and accuracy. For instance, by automating data-intensive processes like customer service or inventory management through AI, companies can achieve unprecedented levels of operational efficiency. New methods and capabilities enabled by AI technologies, like predictive maintenance or real-time network visibility, are improving decision-making abilities and creating a competitive edge through innovation.

However, the effectiveness of these automated systems depends on the integrity of the data they process. Ensuring data access, accuracy and consistency across the board is paramount; otherwise, even the most sophisticated AI systems can falter. Continuous data validation and real-time monitoring become essential practices in an AI-driven business model. New capabilities like cloud data architecture, data quality and data observability must be enabled and are becoming a necessity for all organizations. 

Data and People. While technological upgrades and process improvements are vital, the key to long-term success lies in preparing the people within the organization for AI. Developing a data-driven culture and cultivating data literacy ensures that employees can effectively utilize AI tools and interpret the insights they generate.

Investment in continuous training and development is crucial to equip the workforce with essential AI and data science skills. This educational approach should focus on fostering an attitude that values the use and collaborative exchange of data, enhancing the organization’s collective ability to make informed decisions.

Moreover, leadership must promote this cultural shift towards data-driven decision-making to integrate AI into daily operations seamlessly. By doing so, the organization not only supports ongoing AI initiatives but also attracts and retains top talent who are eager to work in an innovative and forward-thinking environment. This cultural evolution is fundamental in preparing the organization for future technological advances and maintaining its competitive edge.

Making Data AI-Ready. Creating a data infrastructure capable of supporting AI involves more than just technological upgrades. Data is the foundational component for AI implementation. Therefore, companies need to take a strategic approach to enterprise data to implement a modern data cloud architecture and adopt advanced data management and governance. These capabilities must handle data along its lifecycle and enable fast access to a single source of truth for accurate, trusted data that is ready for responsible use, including feeding AI models and applications.

Furthermore, the quality of data used for AI models significantly influences their outcomes and results. Techniques to ensure data accuracy, such as machine learning algorithms for data cleansing and anomaly detection, are vital. Additionally, ethical considerations must be addressed, particularly regarding data bias, transparency, hallucinations, and privacy. Establishing ethical guidelines for data use in AI helps mitigate risks and align AI practices with broader societal values.

Transforming a business to be AI-ready requires a fundamental rethinking of how data is integrated across all aspects of the business model. By placing data at the core, companies not only enhance their current operations but also lay the groundwork for the successful adoption of AI and future technologies. As we look ahead, the businesses that will thrive are those that recognize the intrinsic value of data and its potential to drive innovation and transformation in the AI era.